Dharmendra Pradhan urges states to cut VAT on fuel by 5 per cent

New Delhi: After the Centre decided to slash excise duty on petrol and diesel by Rs 2, Union Petroleum Minister Dhamrendra Pradhan on Wednesday urged states to cut VAT by 5 per cent to bring down the escalating fuel prices.

After facing flak from the Opposition for the relentless rise in prices, the government on Tuesday cut excise duty on petrol and diesel by Rs 2 per litre each.

“We urge states to take responsibility just like the centre did, in direction of consumer interest. If states slash VAT (on fuel) by 5 per cent, consumers will get more relief,” said Pradhan.

He also went on to say that states are the ultimate beneficiaries of tax collection on petrol and diesel. “Hence, they should share the responsibility of providing relief to consumers,” he said.

Petrol price was on Wednesday slashed by Rs 2.5 per litre and diesel by Rs 2.25 following the reduction in excise duty on auto fuels.